Addressing Compliance Requirements for a Small Skincare Business

[Luckyking2162]

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Luckyking2162
PARTICIPANT
January 22, 2025 at 12:30 pm

Hi Peeps,

A relative of mine owns a small homemade skincare brand that was launched post-Covid and has been thriving ever since. Initially, most of the sales were driven by Instagram and word-of-mouth, but the brand now has a website where customers can place orders directly.

We’re about to kick off performance marketing, but recently, the payment merchant sent a notice requesting a manufacturing license or bulk order purchase invoices. If these aren’t provided, payment processing to the linked bank account will be halted.

The brand already holds MSME and GST licenses. While we considered obtaining a manufacturing license, it would require setting up a manufacturing unit that meets the license’s standards, which involves an investment of ₹7-8 lakhs—a significant capital requirement. Currently, 25% of the products are outsourced, and 75% are manufactured in-house under strict hygiene standards. To date, there have been no complaints of skin allergies or infections from customers.

We are moving forward with marketing despite this challenge, but I am concerned that this issue could cause problems down the line.

Could you please suggest a way to address this situation without incurring significant costs?

Thanks in advance!

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